How Governments Treat ICO: 5 Common Positions

How Governments Treat ICO: 5 Common Positions

What authorities in different countries think about the boom of initial placements of tokens.

At different times governments around the world haunted the epidemic, terrorism, nuclear energy, world war. Now it is the turn of blockchain technology, namely the initial coin offerings (ICOs).

Our top trading bots

Every week some countries make a statement because everyone has something to say. However, the overall picture is unclear. Many nations express the radically diverge point of view on cryptocurrencies.

So, how does the government react to ICO ? Here are five main types of approach to ICO.

The forbidden city

The People's Bank of China announced a total ban on ICO and the work of cryptocurrency exchanges.

As noted by many observers, most likely, this intransigence (all token sales are illegal) is a temporary measure allowing the government to wait and, depending on how events will unfold, to properly assess the situation and determine a plan of action.

Cooperation

Some governments prefer to be progressive and open to innovation. They say: it is something completely new, so we need to develop specific laws.

However, in some cases, it's just the appearance. In other cases, we are talking about real attempts to formulate laws — the governments of the Isle of Man and Gibraltar are now developing a regulatory framework that focuses on new financial trends.

It is still unclear how functional the new legislation will be, but the process goes on, and that's already a progress.

Warning

The U.S., Australia, and Japan are prime examples of countries with democracy for which this warning approach is a quite understandable reaction.

When you are confronted with a complex phenomenon, don't be in a hurry. The safest and more rational way based on existing legislation, is to publish a statement in the form of warnings, and not categorical statements.

In short, the essence of these statements is to call for caution. ICO involve risks. Depending on the circumstances, the token may or may not be a security. If the token possesses the characteristics of securities, then each case should be considered separately. It is necessary to follow the current legislation on securities before doing something with ICO.

Some companies do what they want (and ask for forgiveness later). Others remain in the "bright side" (and ask permission for certain actions, or voluntarily apply to token rules that apply to securities — for example, the ICO carried out only for accredited investors).

Sandbox

Instead of hiding the head in the sand, some countries authorities are inviting fintechs to play in their sandbox.

In theory, the regulatory "sandbox" offers companies to cooperate with regulators, promising them big bonuses and discounts when they follow the new laws.

Sounds promising, although, some companies fear that it is a trap. Canadian regulatory "sandbox" — is one of the most active in the world and it has achieved certain results. It is a living laboratory that performs regulatory experiments with ICO, a crowdfunding platform for issuing tokens and crypto investment funds.

2018 will be the year of ICO regulation with new and clearer legislative framework for its implementation.

Although Canadians with their "sandbox" can be applauded for the clarity of the recommendations, some investors see blatant flaws. When it comes to launching "law-abiding" ICO, it has to comply with a huge number of formalities.

Ambiguity

Now let's take Switzerland. The blockchain situation here is not entirely clear. In summer, some commentators have referred to the fact that according to Swiss law, the tokens cannot be equated to securities. Therefore, the sale of tokens is not regulated.

In fact, they may not be regulated just because Swiss has not figured out how to regulate them, and now it is working on it.

Besides, on September 27, Switzerland’s Financial Market Supervisory Authority (FINMA) announced a study of techniques for ICO in the country, thereby giving a better understanding what they can get under the current regulations. It is also a kind of "warning."

Step forward

The question of ICO regulation has confused the world. However, everything points to the fact that 2018 will be the year of ICO regulation with new and clearer legislative framework for its implementation. The countries whose authorities will find the best balance between the need for investor protection with the equally important need to promote ICO will be ahead.

Here’s When Ethereum’s Constantinople Hard Fork Will Happen
Constantinople hard fork will occur in the middle of January, a new agreement between Ethereum developers implies. Earlier it became known that the fork...
Tom Lee Stands By His $25,000 Bitcoin Prediction
Bitcoin’s price has been fluctuating throughout this summer, getting fixed at around $6,700-$7,000 at the end of August. The coin might be showing some...
The Unstoppable: Bitcoin Continues to Rally Above $8,000
Since Monday, July 23 bitcoin cannot stop heading upwards, leaving all security and regulatory concerns slain which have weighed down the coin’s price in...
On Stormy Daniels’s Site It Is Possible To Use Cryptos For Watching Porn
Stormy Daniels, known as an American porn star and stripper, has swollen the ranks of crypto-supporters. The official website of an adult-industry entertainer,...
$91 Million Loan Recorded On Ethereum Blockchain By Spanish Bank
As cryptocurrencies have gained momentum, more concerns arose in the banking sphere. The popularity of cyber money, as lots of experts have said, could...
Soros’s Fund Is Reportedly About to Start Trading Cryptos
Back in January, the business magnate George Soros called bitcoin a bubble, which, if bursts, won’t seriously affect the entire financial ecosystem....
JPMorgan Chase Officially Admits Bitcoin Can Destroy Banks
It’s official. JPMorgan Chase, the largest US lender, has admitted that cyber money as well as peer-to-peer tech trend, could destroy traditional financial...
Telegram Pre-ICO Attracted $850 million
Pavel Durov, the creator of the Telegram messenger, reported on the progress of the ICO, which was announced earlier. As it turned out, investors invested...
JAY-Z Invests In The Robinodod
Investing in the cryptocurrency is attractive not only to financiers but also to rappers, which is proved by Sean Carter himself, better known as rapper...
The Demand For Blockchain Developers Rose In 35 Times
American site Upwork, specializing in the search for freelancers, said that for a year the demand for employees associated with the blockchain industry...
Coinbase US Clients Can No Longer Add Credit Cards As a Payment Option
Digital assets trading venue Coinbase is making the life of crypto enthusiasts more “interesting.” Not long ago its users were informed about the fact...
Hong Kong’s Financial Regulator Vowed to Keep an Eye on Cryptos and ICOs
Hong Kong is believed to be a freer place for crypto enthusiasts. BTCC exchange case alone is enough to prove it. At the end of January, one of the oldest...
Nigeria’s Central Bank Governor Likens Bitcoin To a ‘Gamble’
Godwin Emefiele, the governor of Nigeria’s Central Bank has recently swollen the ranks of officials and government representatives, who express their concerns...
NASA Will Create An Unmanned Spacecraft That Will "Think" Thanks To AI And The Blockchain
NASA began a new research project, which plans to use artificial intelligence and a blockchain for the intelligent system of an unmanned spacecraft. The...
Not By Bitcoin Alone: Blockchain To Assist In Taking Gains When Browsing Online
Traditionally, solve this problem, as the developers of a new project Data Wallet claim. They believe that this technology can allow anybody on the internet...